In a recent development, the grandchildren of Walt Disney and Roy Disney, the founders of Walt Disney Co DIS, have taken a stand in support of CEO Bob Iger and the company’s board. They have criticized and opposed the activist investors who have been challenging the company’s management.
What Happened: The four grandchildren of Roy Disney namely Roy P. Disney, Susan Disney Lord, Abigail E. Disney, and Tim Disney have penned an open letter expressing their apprehensions regarding the activist investors who they perceive as a threat to the company, Reuters reported on Friday. The investors have been trying to influence Disney’s strategies and decision-making processes.
The letter, which was published on Monday, has come at a time when Disney is embroiled in a proxy war with billionaire Nelson Peltz. Peltz has been advocating for cost-cutting measures, a more profitable streaming business, and better succession planning within the company.
The grandchildren of Walt Disney, Walter Elias Disney Miller, Tamara Diane Miller, Jennifer Miller-Goff, and Joanna Sharon Miller, have also voiced their support for Iger and the company’s board, opposing the nominations put forth by Peltz.
Why It Matters: The Disney heirs’ public support for Iger and the company’s board is a significant development in the ongoing power struggle within Disney. This move is a strong rebuke of the activist investors who have been trying to influence the company’s direction and management, as seen in the recent board nomination rejection by Iger.
In January, Peltz’s Trian Fund Management proposed replacing two Disney directors and criticized the company’s investment plans. Disney, in turn, released a detailed rebuttal of Peltz’s claims.
In February, Peltz criticized Disney’s management despite the company’s positive announcements. The Disney heirs’ support for Iger and the company’s management is a significant boost for Disney in this ongoing power struggle.
Photo by Younho Choo on Unsplash
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